Highlights
Continued weakness in the grains from spillover weakness in the energy sector. Prices drew additional pressure from technical selling early in the session. Midday saw strength from the emergence of bargain hunters.
- Energy markets are mostly weaker with the June crude oil down 8-9 bucks at $11.76/barrel, after dipping down to $6.50/barrel.
- The US$ is stronger, up 301 at 100.257, the gold market is weaker, down 17-18 bucks at $1,686/ounce and the CD$ is weaker, down 0.0029 at 0.7049.
- DJIA down 587 at 23063, S&P down 72 at 2733 and NADSAQ down 246 at 8311.
- May options expiration takes place at the close on Friday.
Corn
Wow! A massive punch to the corn market today from sharp losses in the energy markets. The corn market plummeted to 10 ½ year lows on an ongoing meltdown in the energy market from the CoronaVirus. Lack of demand for gasoline continues with the work from home order in place throughout much of the US. Corn prices continue to suffer from demand destruction in the ethanol sector. Prices drew strength from a bout of bargain buying.
- Closes: May at $3.09 ¼, down 5 cents, July at $3.17 ¼, down 5 cents, September at $3.21 ½, down 5 ½ cents, December at $3.32, down 5 cents.
- The May saw a 16 ¼ cent trading range as it dipped down to a low of $3.01 before making a comeback to higher levels (not in the green, just not as low as it was).
- South Korea feed groups continue to buy corn, although has been either South American or optional origin.
- Planting progress ramps up in the US as weather forecasts this week look mostly favorable.
- Spreads: K/N 7 ½ carry, N/U 4 ¼ carry, N/Z 14 ½ carry, Z/N1 25 carry.
Oilseeds
Soybean prices tumbled on weakening demand for soy-bases biofuels and sharp losses in the crude oil market. Fresh supportive news is lacking, demand is poor and weather conditions are mostly favorable for spring planting. Prices drew support from a bout of bargain buying, which pushed soybeans into positive territory by the close.
- Closes: May at $8.30 ¾, up 4 ¼ cents, July at $8.40 ¾, up 4 ½ cents, August at $8.42 ½, up 4 cents, November at $8.48 up 2 ¼ cents. The products were mixed with meal up 3-4 bucks and oil down 63 points.
- The canola market traded lower on spillover weakness in energy, soyoil and other commodities.
- Spreads: K/N 9 ¾ carry, N/Q 1 ¾ carry, N/X 7 ¾ carry, Q/X 5 ¾ carry, X/F 3 carry, X/H 2 ¾ inverse, X/N1 8 ½ carry.
Wheat
The wheat market was thought to be a bright spot in the grain markets with concerns about crop losses in Europe and the Black Sea Region from extended periods of dryness. Chicago and Mpls garnered pressure from weakness in the row crops and technical selling. KC drew support from declining crop conditions and concerns about possible crop losses form recent freezing temperatures across the Southern Plains. HRW planted acres at 21 million are said to be the smallest acreage seen in nearly one hundred years.
- May closes: Mpls at $5.05, down 5 ¾ cents, KC at $4.97 ¼, up 2 cents, Chicago at $5.46 ¾, down 2 cents.
- Jordan passed on their 120k wheat tender.
- Argentina’s Grain Exchanges sees slight increase in wheat sowings (6.7 million hectares versus 6.6 million last year). Planting is expected to begin within the next few weeks.
- Paris milling wheat were mostly steady after yesterday’s big rally. Pressure stemmed from weakness in the Chicago wheat market.
- Duluth stocks increased 1.0 mb to 20.6 mb. Mpls stocks increased 100k bushels to 4.0 mb.
- Spreads: Mpls K/N 12 ¾ carry, Kansas City K/N 7 ¼ carry, Chicago K/N ½ inverse.
